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MARKET BULLETIN 21 November 2014

This Market Bulletin has been produced in association with The Bank of New York Mellon Corporation. Its intended to provide you with a look back at
the events that have affected the performance of global markets in the last fortnight. This is a general market update and should not be considered a
comprehensive or sufficient basis for making decisions.

Weekly Statistics (source: FT)

Key performance indicators (as at Friday 21 November 16:35 GMT)

CURRENT
VALUE

10 DAY
% CHANGE

FTSE 100

6, 750

+ 2.77%

Dow Jones

17, 830

+ 1.44%

Nikkei 225

17, 357

+ 2.89%

Day-by-day analysis of FTSE 100 Index

All eyes were on Japan in the first few weeks of November as doubts over
the strength and staying power of so-called Abenomics came to the fore.
At the end of the previous month, the Japanese central bank threw yet
another quantitative easing-shaped kitchen sink at solving the countrys
economic travails. It announced it would increase its asset-purchasing
programme by 80 trillion (around US$720bn) a year. However, the
Japanese economy surprised many as data showed it unexpectedly
shrank for the second consecutive quarter, leaving it in technical
recession. The worlds third largest economy, after the US and China,
contracted by an annualised rate of 1.6% in the three months to the end
of September forecasters had predicted a 2.1% rise. The economy had
shrunk by a massive 7.3% in the second quarter.

Augusts figure, according to Eurostat. In other news, in early November

fighting between Ukrainian forces and separatists in the east flared up.
Accusations were levelled at the separatists that the 2 November
elections in Donetsk and Luhansk had undermined peace efforts.

In response to this development, Prime Minister Shinzo Abe called

a snap election, two years ahead of schedule. It is believed he is keen
to shore up support before pressing further ahead with Abenomics his
ambitious plan to kick-start Japans stagnant economy. He also plans to
postpone a consumption tax rise planned for 2015 the tax, which was
raised from 5% to 8% in April 2014, is attributed by many to have been a
contributing factor to the countrys return to recession.

All information prepared within has been prepared by BNY Mellon

Investment Management EMEA (BNYMIM EMEA). Any views and opinions
contained in this document are those of BNYMIM EMEA as at date of
issue; are subject to change and should not be taken as investment
advice. BNYMIM EMEA and its affiliates are not responsible for any
subsequent investment advice given based on the information supplied.

Across the Pacific, US President Barack Obama was dealt a sizeable,

if largely expected, blow as the Republican Party won control of the US
Senate for the first time in eight years in the mid-term elections. The
Republicans also increased their majority in the House of Representatives.
President Obama has promised to work with the Republicans in Congress
but said he was also prepared to make more use of his executive powers.
In Europe, Mario Draghi, president of the European Central Bank (ECB),
fuelled speculation that stimulus for the eurozone could be intensified by
indicating he has the backing of policy makers to do so. Should it become
necessary to further address risks of too prolonged a period of low
inflation, the Governing Council is unanimous in its commitment to using
additional unconventional instruments within its mandate, he commented.
Key ECB interest rates were left unchanged.

Meanwhile, in the UK, Prime Minister David Cameron warned of the

growing threats to the countrys economic recovery from global instability.
Vowing to stick with his governments economic strategy, he pointed to the
growing warning signs elsewhere, notably weak growth in Europe and a
slowdown across much of Asia.
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The inflation rate in the eurozone was expected to be 0.4% in October,

up from 0.3% in September, according to a flash estimate from Eurostat,
the EUs statistical office. Among other data releases, the eurozone
unemployment rate remained stable at 11.5% in September compared to

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which is authorised and regulated by the Financial Conduct Authority.
The content of this bulletin, including the figures, is amalgamated from various sources and
represent a snapshot of the market. Stock market and currency movements mean the value
of your investment can go down as well as up and you may not get back the orginal amount
invested. Past performance is not a guide to future performance.

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